FriendFinder Networks makes the right connections to the web, and world

FriendFinder Networks Inc., a Boca Raton-based social networking and multimedia entertainment company, operates some of the most popular websites in the world.

The privately held company owns more than 30,000 sites, many catering to singles looking for love, including its flagship FriendFinder.com. The sites, which attract 405 million registrants across the globe, offer online personals, live video chats, message boards, stories, e-mail and other services.

FriendFinder Networks, which also owns Penthouse Magazine, has more unique visitors than MySpace and Twitter, according to an industry ranking.

Bell and Staton don't apologize for the explicit material contained on some of the sites.

"We let people exercise their First Amendment rights," Bell said, sitting in his large corner office in front of a bank of computer screens. "We don't provide the content. They do. We're just a technology company."

Besides, he said, not all the sites are adults-only. One is BigChurch.com, a religious entity with thousands of members searching for Bible-study partners and other friends. It's the largest Christian dating website in the world, Bell said.

Another of its sites is Amigos.com, which Bell describes as a Spanish version of Facebook.

The company's business model is based on subscriptions rather than advertising. Subscribers pay $15 to $30 a month. In 2010, FriendFinder Networks expects to generate $350 million in revenue and $105 million in earnings before interest, taxes, depreciation and amortization.

"Our goal is to double that," Bell said, adding he hopes to make acquisitions using proceeds from the $551 million financing the company completed in October.

In 2009, the company earned $330 million in revenue and $103 million in EBITDA.

Early in 2010, the company postponed an initial public offering of up to $240 million, citing market conditions. It said at the time in filings with the Securities & Exchange Commission that it lost money in 2006, 2007 and 2008.

FriendFinder has 350 employees at offices in Boca, New York, Las Vegas, Los Angeles and San Francisco. Its Boca headquarters off Clint Moore Road houses accounting, legal and administrative departments.

In 2004, Bell and Staton led a group of private investors who reorganized FriendFinder's predecessor company, Penthouse Media Group.

Three years later, Penthouse Media spent roughly $400 million to acquire Various Inc. and changed the name of the company to FriendFinder Networks.

FriendFinder revamped Penthouse Magazine, trying to attract a larger audience. There have been rumblings that the company would fold the magazine, given the recent struggles of print publications. But a FriendFinder spokeswoman said it has no plans to do so.

In July, the company made a $210 million offer for Playboy Enterprises that's still pending.

Bell also is managing director of Marc Bell Capital Partners, a private equity firm he runs out of FriendFinder's Boca offices. The firm invests in entertainment, publishing and internet ventures as well as real estate developments.

The entrepreneurial Bell, 43, has founded multiple companies and served as an investor in start-ups. He also has produced Broadway musicals and plays, winning a Tony Award in 2006 for Best Musical with Jersey Boys and another for Best Play in 2008 with August: Osage County.

FriendFinder's work atmosphere in Boca Raton is casual. "It's MBWA – management by walking around," Bell said. "We stay out of people's way and let them do their jobs."

Staton, a former real estate developer in the Midwest, has a replica Darth Vader in his office, a souvenior from one of his projects. On a recent workday, he wore a T-shirt and sweatpants.

"We have a lot of fun," he said. "Life's too short to not enjoy what you do."